How to Trade XRP
Trading cryptocurrencies requires some learning before you get started, and XRP is no different. While you’ll naturally pick up new skills with more practice, the best way to get a base of knowledge is by consuming reputable online content.
On this page, we’ll teach you how to start trading XRP. For those that know what you’re doing, see the table above. And if you don’t, keep reading to learn everything you need.
And without further ado, let’s get started.
Best XRP Trading Brokers
Finding places to trade XRP is a little trickier than other major cryptocurrencies. However, you’ve still got a few options – and we’ve listed the best brokers for you below:
How to Trade XRP
To trade XRP successfully (and without compromising your online security) you need to keep a few things in mind. The sections below will tell you all you need to know when trading cryptocurrency.
What Do I Need to Trade Cryptocurrency?
To trade cryptocurrencies, you need a basic knowledge of online trading. You don’t need to be Warren Buffet yet, but you should at least know what is and isn’t a good idea.
You’ll also need to pick a platform to trade your coins from. Exchanges and brokers are the most secure choices and provide a broad range of cryptocurrencies to choose from. A couple of varying factors will affect your decision, such as your strategy and the coin you want to trade.
Where Do You Trade Cryptocurrencies?
You can trade cryptocurrencies on different online platforms. The two most common are exchanges and contract for difference (CFD) brokers. Below, you’ll find a quick summary outlining the difference between these platforms:
An exchange is a platform where you can buy, trade, and sell various cryptocurrencies. You can use these to purchase cryptocurrencies with fiat currencies (e.g. GBP), along with trading between different cryptocurrencies.
A CFD broker allows you to buy an asset rather than one whole cryptocurrency coin. You can use these platforms to speculate on market trends and sell when you think you’re in to make a profit.
For both exchanges and CFD brokers, offerings will differ depending on the platform you choose. So, it’s worth doing your research to ensure you pick the best option.
Should I Trade Cryptocurrencies?
Ultimately, trading cryptocurrencies is your choice. If you don’t want to, you can always try buying them instead or look at another form of investing.
If you choose to trade cryptocurrencies, we suggest educating yourself beforehand. You can read articles, watch videos, and listen to podcasts to learn more. It’s also worth testing with a small amount of disposable income to see if trading is the right choice for you.
We’ve got plenty of resources on our website to help you make a choice that’s best for you.
What Is the Best Way to Trade XRP for a Beginner?
If you’re a beginner, you’re better off trading XRP using a CFD platform. Doing so has several advantages, including:
You don’t need to store coins
You don’t need to buy coins, which can get expensive
You might not need to pay as much tax in some cases
Once you’ve become familiar with XRP, you can move on to using an exchange.
How to Trade XRP Using a Broker
Before we continue, it’s worth noting that you don’t need to use a broker for trading XRP. You’ve got plenty of options which you can find higher up on this page.
When choosing an XRP trading platform, you need to think about security, fees, and other factors like ease of use.
If you still decide that you’d like to trade with a broker, though, you’ll find the steps to doing so below:
Step 1: Open an account with your broker
Step 2: Deposit funds into your account
Step 3: Plan your trading strategy
Step 4: Place your first trade
How to Trade XRP Using an Exchange
If you want to buy coins and trade them, you should use an exchange. Unlike CFDs, these require more knowledge of cryptocurrencies. You should also use a wallet to protect your coins in case a security breach occurs.
The biggest exchanges let you trade various cryptocurrencies, with some offering XRP. Here’s everything you need to know about trading XRP via an exchange:
Step 1: Choose your exchange
Step 2: Set up an account
Step 3: Select which cryptos you want to hold and trade
Step 4: Place your trade
Step 5: Receive your coins
What Are the Alternative Ways to Get XRP?
While centralized exchanges and CFD brokers are the most accessible places to trade, buy and sell XRP, you don’t need to use these if you don’t want to.
Keep in mind that you can’t buy XRP on decentralized exchanges. However, you can use one other alternative. We’ve gone into depth about this option below:
Peer-to-peer (P2P) marketplaces allow you to sell XRP directly to the other user. These platforms work in a similar way to when you buy items from a marketplace like eBay.
P2P marketplaces allow you to talk to the buyer before you purchase XRP. While you can pay online, you can also meet the buyer in person and exchange via cash in some countries.
One famous example of a P2P cryptocurrency marketplace is Binance.
XRP is a little different from Bitcoin, Ethereum, and some of the other prominent cryptocurrencies. Rather than being designed for direct consumer use, its founders launched the currency to compete with SWIFT payments.
Trading XRP is trickier than doing so with some of these other currencies because you’ve got fewer options when it comes to trading. On the flip side, though, these platforms are pretty secure.
XRP has the potential to be a wise investment if you’re trading for the long run. However, if you plan on using a more short-term strategy, consider looking elsewhere.